View this article online: https://www.claimsjournal.com/news/west/2005/05/27/55523.htm
For a 35th consecutive year, SCF of Arizona’s Board of Directors approved a dividend to policyholders. The Board voted unanimously May 24 to a recommended $60 million. Since 1969, SCF has returned more than $1 billion to its qualified policyholders.
SCF policyholders that maintain good safety records and keep their workers’ compensation insurance costs in check receive a portion of the dividend.
“The board is pleased that we can declare a dividend of this amount two years in a row,” says Board Chair Jim Weeks. “But the point is we can only do this because of the competency of the SCF staff. We congratulate the job SCF’s staff and the leadership have done to ensure that we’ve had another tremendous year.”
After the Board reviewed 2004 year-end operating results, which reflect SCF’s operational and investment performances, it voted to approve the dividend amount. President and CEO Donald Smith Jr., said he is committed to awarding dividends in future years, but he cautioned that, employers’ dividends have to be earned each year based on achieving successful operating and investment results. “Of course, we plan to reach or exceed our goals, and an expectation for dividend payout is always factored in. But we must all be mindful that the workers’ compensation business is inherently volatile and uncertain.”
The dividend amount each qualified policyholder receives depends on its annual premium and incurred losses (claims). Declaration of dividends is not guaranteed and are dependent upon SCF’s financial performance for that year.
Mailing of dividend checks begins in July.